Home
Finance Resources
Investment Planning
Banking
Finance
Stock Market
Futures & Options
Trading
Mutual Funds
Insurance
Taxation
Enquire
Home » Finance Current Affairs » Oil & gas service providers unhappy with tax

Oil & gas service providers unhappy with tax

Current Affairs

: The existing provisions of the Income Tax Act, 1961, have given birth to such myriad interpretations that its practitioners are often left wondering that perhaps only Bhagwad Gita could have more possible interpretations. Considering the sheer volume of litigation arising, not to mention the moolah involved as a result of differences in opinion of reading of complex clauses, simplification of tax laws was the crying need of the hour.

The finance minister, while introducing the draft Direct Tax Code (DTC) stressed the fact that DTC represents an attempt to simplify the tax laws of the country by removing ambiguities and thereby encouraging voluntary compliance by the taxpayers. One must appreciate the vision of the finance minister and his team, including the former finance minister, who had a significant say in shaping the DTC in the form it exists today.

However, as it often happens, the intentions and the vision of the legislators are sometimes not translated into black and white and a slight omission here and a misplaced word there can cause lot of discomfort to the tax payers, as many of the non-resident oil & gas service providers may find out in near future.

Under the existing provisions of Section 44BB of the Act, which has non-obstante clause overriding the other provisions of the Act, non-resident service providers to oil & gas industry enjoy a tax regime wherein 10% of the gross receipts are deemed to be their income and tax is levied at the rate of 42.23% on the income so determined, resulting into effective tax rate of 4.23%. Further the section provides that non-resident service providers at their option, can claim their actual taxable income to be lower than the deemed income computed as mentioned above, by furnishing duly audited accounts of the business to the tax authorities. Under the DTC, corresponding provisions of Section 44BB of the Act can be found in serial numbers 6 & 7 of the Rule 1 of Schedule Fourteen. It is interesting to note that this benefit shall not be available to service providers to the natural gas exploration companies. The language used in the serial numbers 6 & 7 of Rule 1 covers the assessees providing services in connection with prospecting/extraction/production of mineral oil.

Mineral oil and natural gas are separately defined in the DTC, unlike under the existing provisions wherein mineral oil is defined to include natural gas. Therefore, it appears that the...



More Current Affairs
1 2 3 4 5 6 7 8 9 10 11 >> Next


put comment
Domain Registration | Windows Hosting | Linux Hosting | Java Hosting | Virtual Dedicated Server | Dedicated Server | Reseller Web Hosting | Unlimited Windows reseller hosting | Unlimited Linux reseller hosting | Cheap Windows reseller hosting | Cheap Linux reseller hosting | Cheap Windows hosting | Best Windows hosting | Windows hosting Multiple Domains | Unlimited Windows hosting | Compare hosting plans | Cheap Linux hosting | Best Linux hosting | Linux hosting Multiple Domains | Unlimited Linux hosting | Cheap asp.net hosting | Best asp.net hosting | unlimited asp.net hosting | Cheap asp.net reseller hosting | Unlimited asp.net reseller hosting | Java Features | Cheap Java hosting | Best Java hosting | unlimited Java Hosting | Unlimited Linux reseller hosting | Java Hosting Multiple Domains| | Matargashti Full Song | Matargashti mp3 Download | Matargashti Video Download | Matargashti Song Tamasha | Prem Ratan Dhan Payo Songs Download | Prem Ratan Dhan Payo Songs mp3 Download | Prem Ratan Dhan Payo Songs Video Download | Pinga Song Download | Pinga Full Song mp3 Download | Pinga Song mp3 Download | Pinga Song Video Download | Latest Bollywood Updates | Bollywood Updates | Prem Ratan Dhan Paayo Songs Download|
© ProfitGuruOnline-2024. All Rights Reserved.